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Capitalisation
What is the minimum amount for asset to be eligible for capitalisation?
Replies (6)
Quick Summary
There is no minimum amount for capitalisation of an asset is defined by any Act or Accounting standards in India.
Capitalization of an assets is determined by various factors like nature of asset, use of fixed asset by entity, useful life an asset, cost of the asset, Nature of the business of an entity etc.
So cost of an assets is one of the factors among others.
Capitalization of an assets is determined by various factors like nature of asset, use of fixed asset by entity, useful life an asset, cost of the asset, Nature of the business of an entity etc.
So cost of an assets is one of the factors among others.
Yes... I agreed to Mr Karan Singh views...
Well said Mr Karan Singh...
Well said Mr Karan Singh...
Yes, there is no minimum amount for an expense to be categorised as a Capital Expenditure
The nature of expenditure, useful life of the asset, cost of the asset, use of asset in the business etc. All theses factors determine whether it is an asset for the entity or not.
Thank you
You are welcome @ jaspal singh
and thanks to Mr. Raja PM for appreciating my answer.
and thanks to Mr. Raja PM for appreciating my answer.
You are most welcome dear Mr Karan Singh
and Mr Jaspal Singh...
and Mr Jaspal Singh...
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